• Walmart Supercenter focused primarily on groceries, fresh food, and a full-service supermarket experience, also offering pharmacy and general merchandise.
• Like a national Target, but with a stronger emphasis on fresh groceries and organic products, alongside its pharmacy, general merchandise, and fuel sales.

• Groceries: A wide range of food products including fresh produce, meat, dairy, baked goods, and packaged and organic food items.
• General Merchandise: Non-food items such as apparel, home goods, electronics, automotive products, and toys.
• Health and Beauty Care Products: Personal care items, cosmetics, and over-the-counter health products.
• Pet Products: Food, supplies, and accessories for pets.
• Manufactured Food Products: Private label and store-brand food items produced directly by Kroger.
• Fuel: Gasoline and other automotive fuels sold at its retail fuel centers.
• Pharmacy Services: Prescription fulfillment, health consultations, and vaccination services provided by in-store pharmacies.

The Kroger Co. (KR) sells primarily to individuals, operating as a major retail chain across the United States. Based on its diverse store formats and product offerings, its customer base can be categorized into the following groups:

• General Consumers/Households: This is the broadest customer segment, encompassing individuals and families who frequent Kroger's combination food and drug stores, marketplace stores, and fuel centers for their everyday needs. They purchase groceries, general household items, pharmacy products, and fuel.
• Value-Oriented Shoppers: These customers are primarily drawn to Kroger's price impact warehouse stores, where they seek competitive pricing and bulk options on groceries, health and beauty care items, meat, dairy, baked goods, and fresh produce. Their main motivation is to maximize savings on their purchases.
• Specialty & Lifestyle Shoppers: This category includes consumers who seek specific product attributes or a wider range of non-grocery items. They are served by natural food and organic sections within combination stores, as well as multi-department stores that offer apparel, home fashion, electronics, and toys, catering to specific lifestyle choices and broader shopping needs beyond daily essentials.

• Ocado Group plc (Symbol: OCDO)

Greg Foran, Chief Executive Officer

Greg Foran was appointed Chief Executive Officer of The Kroger Co. and joined the Board of Directors in February 2026. Prior to joining Kroger, he held senior leadership roles at Woolworths, Walmart, and Air New Zealand. He served as Chief Executive Officer of Air New Zealand from 2020 to 2025. Before Air New Zealand, Foran joined Walmart in 2011, holding various senior positions including President and CEO of Walmart China from 2012 to 2014, Walmart Asia in 2014, and Walmart U.S. from 2014 to 2019. The available information does not indicate if he founded or sold other companies, or if he has a pattern of managing companies backed by private equity firms.

David Kennerley, Executive Vice President and Chief Financial Officer

David Kennerley was elected Executive Vice President and Chief Financial Officer of The Kroger Co. in March 2025. In this role, he is responsible for various financial aspects including Accounting & Financial Reporting, Financial Planning & Capital Management, Operational Finance, Tax, Pension Investment, Treasury, Audit & Risk Management, Investor Relations, Mergers & Acquisitions, and Finance Modernization. Before joining Kroger, he held various leadership roles at PepsiCo from 2001 to 2025, with his most recent position being CFO, Europe from March 2020 to March 2025. The available information does not indicate if he founded or sold other companies, or if he has a pattern of managing companies backed by private equity firms.

Mary Ellen Adcock, Executive Vice President and Chief Merchant and Marketing Officer

Mary Ellen Adcock was elected Executive Vice President in 2025 and Senior Vice President and Chief Merchant and Marketing Officer in December 2024. She is responsible for sales and category planning for fresh foods, center store, and general merchandise categories, as well as analytics & execution, e-commerce, digital merchandising, fuel, and Kroger's Our Brands. Adcock joined Kroger in 1999 in the company's manufacturing division. Her career at Kroger includes leadership roles in the Columbus Division, Vice President of Operations, Vice President of Merchandising, Vice President of Natural Foods Merchandising, and Vice President of Deli/Bakery Manufacturing. She served as Senior Vice President of Operations since 2019, overseeing strategic operations for the company's stores.

Yael Cosset, Executive Vice President and Chief Digital Officer

Yael Cosset was elected Executive Vice President in 2025. He was appointed Senior Vice President and Chief Information Officer in May 2019 and is responsible for leading Kroger's digital strategy, focusing on building the company's presence in digital channels, personalization, and e-commerce. He also oversees Kroger's alternative profit businesses, including its data analytics subsidiary, 84.51˚ LLC, and Kroger Personal Finance. Prior to these roles, Cosset served as Chief Commercial Officer and CIO of 84.51° since its inception in 2015. Before that, he held several leadership positions at dunnhumby, including Executive Vice President of Consumer Markets, Global CIO, and CEO of KSS Retail.

Timothy Massa, Executive Vice President and Chief People Officer

Timothy Massa leads all areas of Human Resources and Labor Relations for The Kroger Co., including total rewards, diversity, training and development, talent acquisition, retention, and engagement, corporate affairs, and associate communications. He also oversees shared services and aviation. Massa was elected Senior Vice President in June 2018 and serves as the company's Chief People Officer. He joined Kroger in October 2010 as Vice President, Corporate Human Resources and Talent Development. Before his tenure at Kroger, Massa spent 21 years in various Human Resources leadership roles at Procter & Gamble, most recently as Global Human Resources Director of Customer Business Development.

Here are the key risks to The Kroger Co. (KR) business:

1. Intense Competition, Pricing Pressures, and Strategic Realignment: Kroger operates in a highly competitive grocery market, facing pressure from traditional grocers, discounters, and online retailers. This competition leads to pricing pressures that can impact profit margins. Furthermore, there are growing concerns and scrutiny from lawmakers and consumers regarding Kroger's use of electronic shelf labels (ESLs) and "surveillance pricing," which allow for dynamic price changes and potentially lead to price gouging. The company's significant strategic setback of the blocked $24.6 billion acquisition of Albertsons in December 2024 has further impacted its competitive positioning and required a realignment of its growth strategy. The merger's failure resulted in substantial merger-related costs and leadership changes, creating uncertainty around future strategic direction and shareholder value.
2. Labor Relations, Wage Pressures, and Operational Costs: Kroger faces ongoing risks related to its labor force, including union negotiations, potential work stoppages, and rising wage demands. Employee complaints about understaffing leading to inaccurate pricing and challenging working conditions can affect customer satisfaction and operational efficiency. Increased investment in associate wages and benefits directly impacts operating expenses, while labor disputes can disrupt operations and harm the company's reputation.
3. Challenges in E-commerce and Automated Fulfillment Network Performance: While Kroger is investing heavily in its digital and e-commerce capabilities, the company has experienced significant challenges. It anticipates an impairment charge of approximately $2.6 billion in the third fiscal quarter of 2025 due to the underperformance and planned closures of its automated fulfillment network (Ocado). This indicates the difficulties and financial risks associated with executing large-scale technological and logistical investments in the rapidly evolving online grocery market.

The accelerating shift towards online-first grocery shopping models and rapid delivery services, primarily driven by technology-centric companies and e-commerce giants (such as Amazon and Walmart's extensive online operations), poses a significant emerging threat. This trend could fundamentally disrupt the traditional brick-and-mortar supermarket model by diminishing the necessity of physical store visits and altering consumer expectations for convenience and speed, potentially eroding market share and profitability for established grocers like Kroger.

For the public company Kroger (symbol: KR), the addressable markets for its main products and services in the United States are as follows:

• Grocery Retail (Supermarkets & Grocery Stores): The market size for Supermarkets & Grocery Stores in the U.S. was estimated at $900.6 billion in 2025. This market encompasses a wide range of products including natural food and organic sections, fresh seafood, organic produce, meat, dairy, baked goods, and general groceries.
• Pharmacy Services (Pharmacies & Drug Stores): The market size for Pharmacies & Drug Stores in the U.S. was estimated at $670.5 billion in 2025. This market includes pharmacy services and health and beauty care items.
• Retail Fuel: Gasoline sales in convenience stores in the U.S. totaled $532.2 billion in 2023. Kroger operates fuel centers, which are typically associated with its supermarkets.

Kroger (KR) is expected to drive future revenue growth over the next two to three years through a combination of strategic initiatives aimed at enhancing customer value, expanding market reach, and optimizing operations.

Here are 3-5 expected drivers of Kroger's future revenue growth:

1. Digital Transformation and E-commerce Expansion: Kroger is significantly investing in its digital capabilities and e-commerce business, which has shown strong growth. Adjusted e-commerce sales grew 20% in the fourth quarter of 2025 and 10% for the full fiscal year 2024, exceeding $13 billion. The company launched a dedicated eCommerce Unit in March 2025 and is investing in AI-driven supply chain systems, robotics, cloud computing, and personalized online shopping tools. Kroger aims to achieve e-commerce profitability by 2026.
2. Expansion and Innovation of Private Label Brands ('Our Brands'): The growth of Kroger's private-label portfolio is a key strategic driver. In fiscal 2024, the company launched over 900 new private-label products, including 370 fresh items. The 'Our Brands' portfolio currently generates $30 billion in annual sales and is seen as crucial for capturing market share and enhancing customer loyalty, particularly given increasing consumer preference for private labels.
3. Strategic Store Development and Optimization: Kroger is actively managing its physical footprint by closing underperforming stores while simultaneously investing in new store openings and remodels. The company completed 29 major store projects in 2024, with 30 planned for 2025, and intends to increase new store openings by 30% in 2026 compared to 2025. This strategy aims to strengthen its existing market presence and expand into underserved areas.
4. Growth in High-Potential Product Categories: Kroger is focusing investments on categories such as pharmacy and fresh food, which are consistently demonstrating strong performance. Fresh identical sales have outperformed center store sales, and the company reported an 11% growth in vaccinations in 2024, highlighting the strength of its health and wellness offerings. This strategic focus helps diversify revenue streams and cater to evolving consumer demands for healthier options.
5. Enhanced Customer Value through Competitive Pricing and Operational Efficiency: Kroger's strategy for 2026 emphasizes competitive pricing, supported by ongoing efforts to improve operational effectiveness and reduce costs. The company plans to reinvest cost savings from operational gains into lower shelf prices to attract cost-conscious customers and boost market share. Improvements in sourcing, lower supply chain expenses, and productivity enhancements are expected to contribute to boosting gross margins while offering value to customers.

Share Repurchases

• Kroger's Board of Directors approved an additional $2.0 billion share repurchase authorization in December 2025, bringing the total available under authorizations to approximately $2.9 billion as of December 23, 2025.
• In December 2024, a $7.5 billion share repurchase authorization was announced, which included a $5 billion accelerated share repurchase program. The $5 billion ASR was completed, with the remaining authorization repurchased through open market transactions by the end of fiscal 2025.
• The company temporarily paused its share repurchase program to prioritize de-leveraging following the proposed merger with Albertsons, but subsequently resumed repurchases.

Share Issuance

• Kroger's common shares outstanding have generally decreased due to ongoing share repurchase programs.

Capital Expenditures

• Kroger projects capital expenditures to be between $3.8 billion and $4 billion for fiscal year 2026.
• Capital expenditures peaked at $4.017 billion in fiscal year 2025 (or $3.875 billion for the fiscal year ending February 2025). For fiscal year 2024, capital expenditures were $3.904 billion.
• The primary focus of capital expenditures includes investments in new store openings, remodels, enhancing digital capabilities, e-commerce platforms, and optimizing operational efficiency to drive sales growth and improve efficiency.